Customs APA : introduction of advance customs valuation arrangements

In response to concerns expressed by foreign business leaders faced with increasingly intense customs audits, the Korea Customs Service began working on a programme that would allow taxpayers to seek advance approval of import prices agreed between related parties. This approval would shield such prices from post-importation audits, similar to the protection provided under an advance pricing approval for transfer pricing purposes. This article discusses the possibility from 1 January 2008 to enter into an advance customs valuation arrangement.